Output shaft seal perhaps?
You would need to remove the drum to inspect a little more I guess.
Here is a guide - www.discovery2.co.uk / Transfer Box Rear Output Seal / Handbrake Shoes.
Hey guys. Im chasing a little help... So I changed the gearbox oil and fitted a new transfer case a few weeks back. The oil that came out was milky brown. So after looking on the forums here I replaced the old oil with Penrite Trans Gear semi synthetic 75w - 90 (also used same oil to replace diff oils).S ince the oil change, oil has been leaking from the shaft near the handbrake drum? Haha not down with all the part names yet (see photo). A mate of mine who also owns a defender reckons the oil is too light or a seal is gone. Before the oil change, there was no leak. I have already had to top up the oil in the gearbox as loses a bit whilst driving (underneath has a nice coat of oil ). Has anyone had anything simular happen or know what the issue might be?
Cheers,
Scotty
 Fossicker
					
					
						Fossicker
					
					
                                        
					
					
						Output shaft seal perhaps?
You would need to remove the drum to inspect a little more I guess.
Here is a guide - www.discovery2.co.uk / Transfer Box Rear Output Seal / Handbrake Shoes.
The felt seal.under the drive flange nut that's hidden by the prop shaft has gone.
80/90.of the old.school variety spent usually leak out but the thinner synths will quite easily
Pull it replace it and pack it with plenty of a tv blue, retorque the nut and it's fixed.
Dave
"In a Landrover the other vehicle is your crumple zone."
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Thanks guys. Shall give it a go on my next lot of days off
 Master
					
					
						Master
					
					
                                        
					
					
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